Refer to problem 3 37 Prepare a balance sheet as of
Refer to problem 3-37. Prepare a balance sheet as of November 30, 20X0, and an income statement for the month of November. Prepare the retained earnings column of a statement of stockholders’ equity. Prepare the income statement first.
In problem, the balance sheet accounts of Detroit Machinery, Inc., had the following balances on October 31, 20X0:

Following is a summary of the transactions that occurred during November:
a. Collections of accounts receivable, $75,000.
b. Payments of accounts payable, $14,000.
c. Acquisitions of inventory on open account, $80,000.
d. Merchandise carried in inventory at a cost of $70,000 was sold on open account for $96,000.
e. Recognition of rent expense for November, $1,000.
f. Wages paid in cash for November, $8,000.
g. Cash dividends declared and disbursed to stockholders on November 29, $10,000.
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